New Delhi, Dec 9 (KNN) It is no more a surprise for the stakeholders that electricity watchdogs across the country have been failing to enforce their own directives resulting into exorbitant power tariffs and poor financial health of discoms.

The industry bodies have been pointing that the Electricity Regulatory Commissions (ERCs) have failed in their duties to enforce their own regulations that has allowed discoms operating in the states to get way without furnishing details of their assets, cost of power supply and cross-subsidisation.

In addition, discoms are also issuing un-metered power connections to consumers in violation of the regulator's directive.

To understand the entire process of petitioning by DISCOMs for ARR to tariff orders by the ERC, apex body for MSME associations in the country, FISME (Federation of Indian Micro & Small and Medium Enterprises) conducted a detailed study on UPERC and formulated required course of actions.

FISME has written a letter to Union Power Minister Piyush Goyal highlighting the serious need of Study of compliance of Orders issued by ERCs to improve DISCOMS.

In the letter, FISME pointed that the DISCOMS being the “weakest link” in the supply chain of electricity in India presently, is negating efforts of the government at delivering power to the entire population on a 24X7 basis at economical price.

FISME suggested that a department may be created within Ministry of Power to study the Orders/ directions issued the ERCs to the DISCOMs to improve their working.

“Most surprisingly the DISCOMs do not act on the directives of the ERC and just keep on promising to implement their directives year on year. The ERCs remain mute spectators to the gross violations of their directives,” the letter said.

FISME suggested that once the “department” in the MoP starts studying the directions and asking for ATR from DISCOMs a sense of urgency shall be built around the issues.

“There is no doubt if the subjects are addressed comprehensively, many desirable improvements will come about in the system,” it added.

The industry body submitted a list of directives of UPERC, which the regulator itself flouts. One of the most prominent directives highlighted was Maintenance of Asset Register.

 Further, it was also pointed that the governments endeavour to make Discoms independent from State Government is also failing as all the important decisions are taken by State Government defeating the very purpose of creating independent companies by multiple segmentation of the UPSEB.

Other important directive which are not followed by UPERC includes - Mandatory Cost Audit and maintenance of  cost records and its inclusion in  the books of accounts; Every Consumer should be metered at the premises; The bad and doubtful debts cannot be passed on to consumers; Reduction in high distribution losses  ; Disallowance of purported procurements from blacklisted firms; Repair and Maintenance Expenses (should not go) beyond approved figures; Fixed Asset Register should be prepared immediately;  Procurement of expensive power to be discouraged; and Procurement of expensive power to be discouraged.

FISME is also working with other leading industry associations of UP to file a petition with Courts of Law against UPERC’s failure to enforce its instruction.

The Shunglu panel set up by the Centre in 2010 to examine factors responsible for poor financial health of discoms, too found that SERCs were unable to discharge their duties independently and fairly.

It had recommended several measures to reform the functioning of the electricity regulator commissions, including appointment of a retired judge on regulatory commissions as a mandatory practice. But not much progress has been reported in implementation of the panel’s recommendations. (KNN Bureau)